Alliance Pipeline shuts down its 1.6 bcf/d natural gas mainline

CALGARY, Alberta Aug 7 (Reuters) - Alliance Pipeline
shut down its 1.6 billion cubic feet per day (bcf/d)
natural gas mainline in Western Canada on Friday after poisonous
hydrogen-sulphide gas got into the system, forcing at least one
shipper to suspend production.

The 3,848-kilometre (2,391-mile) Alliance Pipeline delivers
natural gas from Western Canada and North Dakota's Williston
Basin to the Chicago market hub.

The company, a limited partnership owned by affiliates of
Enbridge Income Fund Holdings and Veresen Inc,
did not give any estimate of when the pipeline would restart.

"In order to correct the situation, Alliance is commencing
mitigation activities which are expected to result in a
zero-flow condition on the pipeline," the company said in a
statement.

Hydrogen sulphide, a flammable, extremely hazardous gas with
a rotten egg smell, entered the mainline pipeline system as a
result of complications experienced by an unnamed upstream
operator, the company added.

Seven Generations Energy Ltd, a shipper on the
Alliance system, said the pipeline company had called for all
natural gas suppliers to suspend pipeline injections for an
indeterminate period, starting on Friday morning.

Seven Generations, a Calgary-based light oil producer, has
been forced to shut in 55,000 barrels of oil equivalent per day,
its entire production, as a result.

"This suspension will result in a deferral of essentially
all of Seven Generations' production until the situation is
resolved. 7G intends to use this temporary event to conduct
maintenance of its production and processing facilities," the
company said.
Continued...